Written by 9:50 am Blog, Securities Fraud Articles

Recovery of Paulson Advantage Hedge Fund Losses

Are you an individual investor that has lost money in the Paulson Advantage hedge fund?  If so, the securities attorneys of The White Law Group may be able to help.

As the market has slowly puttered along over the last few years, financial advisors and brokerage firms have been looking for new ways to increase returns for their clients.  One such way is the increasing practice of investing individual investors in hedge funds.  This is often accomplished by packaging multiple individual investors to meet the minimum investment requirements often required by hedge funds.

Unfortunately for these investors, hedge funds are extremely risky and not suitable for every investor.  2011 was a particularly volatile year for hedge fund investors and many hedge funds were down substantially.

One such hedge fund is the Paulson Advantage Fund.

The Paulson Advantage Fund, operated by John Paulson (the man best known for shorting subprime credit in 2007), is reported to be down a staggering 35.91% net of fees for 2011.  Additionally, the Paulson Advantage Plus fund was reportedly down a whopping 50.67% after fees.

If you invested in either of these hedge funds at the recommendation of your financial professional or brokerage firm, you may be able to recover your investment losses through FINRA arbitration.

Brokerage firms have a fiduciary duty to research investments prior to recommending them for sale to its clients.  Brokerage firms are also required to make sure that the investments recommended to their clients are appropriate in light of the client’s age, investment experience, investment objectives, and net worth.

Due to the high risk nature of hedge funds like the Paulson Advantage Fund, such investments are only appropriate for the most sophisticated and high net worth investors, and even then, only as a small part of the investor’s overall investment strategy.

To speak with a hedge fund attorney regarding your hedge fund losses, please call The White Law Group’s Chicago office at 312/238-9650.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, visit http://whitesecuritieslaw.com.

 

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